The Landscape Supply Center is a retail store that sells garden equipment, furniture, and supplies. Its credit purchases and purchases returns and allowances for December are shown below. The general ledger accounts used to record these transactions are also provided. The balance shown is for the beginning of December 2016.

INSTRUCTIONS

PART I

1. Open the general ledger accounts and enter the balance of Accounts Payable for December 1.

2. Record the transactions in a three-column purchases journal and in a general journal. Use 8 as the page number for the purchases journal and 20 as the page number for the general journal.

3. Post the entries from the general journal to the proper general ledger accounts.

4. Total, prove, and rule the purchases journal as of December 31.

5. Post the column totals from the purchases journal to the proper general ledger accounts.

6. Compute the net delivered cost of the firm's purchases for the month of December.

GENERAL LEDGER ACCOUNTS

205.................. Accounts Payable, $13,490 Cr.

501.................. Purchases

502.................. Freight In

503.................. Purchases Returns and Allowances

DATE.............. TRANSACTIONS

Dec. 1 Purchased lawn mowers for $5,780 plus a freight charge of $156 from Selby Corporation, Invoice 2110, dated November 26, net due and payable in 45 days.

5 Purchased outdoor chairs and tables for $5,700 plus a freight charge of $100 from Patio Furniture Shop, Invoice 633, dated December 2; the terms are 1/15, n/60.

9 Purchased grass seed for $1,148 from Spring Lawn Center, Invoice 1127, dated December 4; the terms are 30 days net.

16 Received Credit Memorandum 101 for $400 from Patio Furniture Shop; the amount is an allowance for scratches on some of the chairs and tables originally purchased on Invoice 633, dated December 2.

19 Purchased fertilizer for $1,600 plus a freight charge of $156 from Spring Lawn Center, Invoice 1131, dated December 15; the terms are 30 days net.

21 Purchased garden hoses for $760 plus a freight charge of $76 from Delta Rubber Company, Invoice 8517, dated December 17; the terms are n/60.

28 Received Credit Memorandum 210 for $150 from Delta Rubber Company for damaged hoses that were returned; the goods were purchased on Invoice 8517, dated December 17.

31 Purchased lawn sprinkler systems for $3,700 plus a freight charge of $80 from Cason Industries, Invoice 8819, dated December 26; the terms are 2/10, n/30.

INSTRUCTIONS

PART II

1. Set up an accounts payable subsidiary ledger for The Landscape Supply Center. Open an account for each of the following creditors and enter the balances as of December 1.

2. Post the individual entries from the purchases journal and the general journal prepared in Part I.

3. Prepare a schedule of accounts payable for December 31.

4. Check the total of the schedule of accounts payable against the balance of the Accounts Payable account in the general ledger. The two amounts should be equal.

Creditors

Name Terms Balance

Cason Industries......................... 2/10, n/30............... $2,150

Delta Rubber Company................. n/60........................ 3,850

Patio Furniture Shop.................... 1/15, n/60

Selby Corporation........................ n/45........................ 4,842

Spring Lawn Center..................... n/30........................ 2,648

Analyze: By what amount did Accounts Payable increase during the month of December?